Time Phased (Time-Phased Safety Stock)
 | With the introduction of Time-Phased ROP in the 12.2.1.0 release, the name of this Order Policy will begin to transition to Time-Phased Safety Stock. |
A proactive Order Policy Type where orders are made when projected inventory is expected to fall below Safety Stock. This Order Policy uses forecasted demand data to maintain orders for a consistent optimal stock position over time, automatically identifies expedites and deferrals, and can adjust order quantities and dates accordingly. The process compares inventory levels in future time. It supports strategic/collaborative processes. Aerospace and defense companies typically use time phased order policy.
Time-Phased Safety Stock orders are for a fixed quantity for central locations. These are some part characteristics that would indicate that Time-Phased Safety Stock would be a good choice for the Order Policy for that part or SKU:
• Relatively higher volume
• Relatively expensive
• More critical
• Longer lead times
These are the inputs that are evaluated for parts and pairs that use Time-Phased Safety Stock Order Policy:
• Forecast (by day)
• Procurement and repair orders
• Replenishment and balancing orders
• Sales orders
• Forecasted returns OR sales returns
• Lead time elements
• Calendars
| | Time-Phased Safety Stock should not be used as the Order Policy for replenished locations unless it is absolutely necessary. |
These conditions support using Time-Phased Safety Stock as the Order Policy selection:
• If net, time phased requirements must be provided to suppliers or factories
• If you have visibility to future sales orders that are required to be planned
• To take advantage of kit planning functionality in Order Plan
• Procurement/repair locations that need time phased orders
• Higher volume pairs
• Highly seasonal pairs
• Longer lead time pairs
Commonly referred to as “TP” (Time Phased).
See also